Operating a business comes with many responsibilities and often requires new strategies, skills and knowledge to properly execute and manage the financial process.
If you are not making any money in your business then you need a plan. First of all the money is in your head as an idea that needs to be executed.
I am also going to say that you must be working for purpose and not money, this is what many people get wrong. Money is only the resource that you receive after you have monetized your gift and added value to others for an exchange.
Purpose attracts prosperity and also gives you fulfillment.
When people don’t understand how money works the money becomes their master when instead you should be the master of your money.
What is the purpose of your business?
Having a unique purpose in your business allows you to become a mature business owner. You are the creator/planner and the executer.
You set goals and deadlines and you set boundaries very important in running a successful, purposeful and profitable business.
Here are a few skills you need to master as a business owner and if you want to focus on just creating you can have my team work on the financial side for you.
Understanding basic Financial StatementsYou may just have started out so you want to ensure you are keeping track of your income and expenses via a profit and loss statement.
Also you need to maintain a cash flow statement which will be used if you need to pay quarterly taxes to the irs. Need a loan from the banks etc
All of this data can be captured via your bookkeeping which is day to day recording of your business operations. Your books will or should provide accurate information about your business financial performance and position.
Income Projections; Are you making any? How much money do you want to make per year then break down your goal via quarterly milestones, monthly and then weekly.
Business Credit; Most highly talked about these days because it's a great tool to use your business as a cash flowing machine in the months that you may have slow periods or want to purchase things for your business on credit than in your personal credit after all your personal and business finances must be separated.
Lastly your pricing and invoicing; You need to get paid for your products and services and you need to track it. You won’t know how much money you make unless you are keeping track of it.Here are three basics for growing your business;
Choose the right business model; If you are just starting off then you may operate as a sole proprietor, as your business grows you may opt in to register an license with your state to make your business legal by choosing to be an LLC, partnership if it's more than one individual, a C Corp or SCorp, all of these entities comes with different benefits and guidelines. We will go over these in another video or podcast
Securing Capital or investment to expand this can be a big factor if you do not have a legal business back to point one, no tax returns to show that you indeed have a business. Irs likes to collect money. No bank statements, cash flow statements, business planning etc.
A Great team who supports you and understands your vision and mission. This can be your coach, mentor, tax advisor, assistant, employees etc.You don’t need to be a financial expert to grow a profitable brand but you need the knowledge and skills as well as guidance to make informed financial decisions.
When you understand your business purpose you will begin to make the impact and income you desire with ease and less hustle.
You can do anything you put your mind to and that includes building a business that is successful, purposeful and profitable.
